Owner Builder fined for not providing Home Indemnity Insurance

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Failure to provide Owner Builder Home Indemnity Insurance has cost a Perth man a fine. Where W.A’s building regulator instigated action at Joondalup’s magistrates Court* in November.

It is a mandatory requirement in W.A that Indemnity Insurance is to be provided to the purchaser of the home where Owner Builder works have been done. In W.A it is restricted to the home, and works requiring a building licence over $20,000.

Owner Builders are a builder and just like a builder are required to supply Indemnity Insurance. If the sale is within 7 years from the Building Licence in WA. Owner Builders can be under the mistaken impression that because they have supplied the purchaser an Indemnity Insurance Policy that is the end and any problems, defects are the insurers issue. Not so, unless the Owner Builder has died, become insolvent or disappeared otherwise it is the Owner Builders responsibility to fix the defects that are with in the 7 year (WA) Policy Period.

This is where it is very important that the (defect) Inspection Report is provided to the purchaser and a copy kept by the Owner Builder, because any defect, incomplete works or second hand building materials listed on the report are excluded from any action by the purchaser.

For more information, refer to the Owner Builder Indemnity section here

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